SCHD vs VTI: Correlation & Overlap
Schwab US Dividend Equity ETF (SCHD) and Vanguard Total Stock Market ETF (VTI) show a strong relationship: their 3-year correlation of weekly returns is 0.62. By holdings, the two funds overlap 7.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SCHD and VTI?
Across a 3-year window, the weekly returns of SCHD and VTI correlate at 0.62, strong. Lately the two have drifted apart, with the 1-year correlation at 0.23 versus 0.62 over 3 years. Stretching to 5 years gives 0.77, with an annualized covariance of 116.7 %².
Within SCHD's tracked universe of 108 assets, VTI comes in at #32 by 3-year correlation. The trailing year gives SCHD the advantage: +29.6% versus +20.7%, a 8.9-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.26 to 0.89.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
SCHD vs VTI: side by side
| SCHD (Schwab US Dividend Equity ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +29.6% | +20.7% |
| 5-year return | +60.9% | +74.8% |
| Volatility (ann.) | 12.9% | 14.6% |
| Beta vs S&P 500 | 0.52 | 1.01 |
| Max drawdown (3Y) | -16.1% | -19.3% |
| Dividend yield | 3.13% | 1.06% |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $104.2B | $2,290.0B |
| Sector / category | ETF · Dividend | ETF · US Large Cap |
SCHD is a Large Value fund from Schwab ETFs: $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between SCHD and VTI
The two portfolios are largely distinct: 7.4% of the funds' weight sits in the same underlying holdings (97 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in SCHD | Weight in VTI |
|---|---|---|
| UNH | 3.92% | 0.52% |
| CVX | 3.89% | 0.52% |
| PG | 3.81% | 0.47% |
| HD | 3.94% | 0.46% |
| MRK | 4.92% | 0.45% |
| KO | 4.22% | 0.42% |
| TXN | 3.13% | 0.35% |
| AMGN | 4.80% | 0.29% |
| PEP | 3.68% | 0.27% |
| ABT | 4.83% | 0.26% |
| VZ | 3.97% | 0.24% |
| QCOM | 2.41% | 0.22% |
| COP | 3.86% | 0.20% |
| LMT | 2.79% | 0.19% |
| BMY | 3.35% | 0.19% |
Largest positions held only by SCHD: ALV (0.21%), GVMXX (0.04%), CNA (0.03%), USD (0.02%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | SCHD | VTI |
|---|---|---|
| 2022 | -3.3% | -19.5% |
| 2023 | +4.5% | +26.0% |
| 2024 | +11.7% | +23.8% |
| 2025 | +4.3% | +17.1% |
| 2026 | +29.1% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCHD and VTI good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SCHD and VTI?
As of 2026-08-27, the correlation of weekly returns between SCHD and VTI is 0.62 over 3 years, 0.23 over 1 year and 0.77 over 5 years.
Is VTI a good diversifier for SCHD?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SCHD and VTI overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 7.4% by weight over 97 common positions.
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